Nutanix (NASDAQ: NTNX) and Seven Stars Cloud Group (NASDAQ:SSC) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, earnings, risk, profitability, analyst recommendations and dividends.

Profitability

This table compares Nutanix and Seven Stars Cloud Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nutanix -40.81% -271.31% -46.34%
Seven Stars Cloud Group -22.98% -86.92% -37.44%

Earnings & Valuation

This table compares Nutanix and Seven Stars Cloud Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nutanix $766.87 million 6.61 -$458.01 million ($2.42) -13.06
Seven Stars Cloud Group $4.54 million 39.36 -$25.83 million ($0.61) -4.70

Seven Stars Cloud Group has lower revenue, but higher earnings than Nutanix. Nutanix is trading at a lower price-to-earnings ratio than Seven Stars Cloud Group, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

34.7% of Nutanix shares are held by institutional investors. Comparatively, 1.7% of Seven Stars Cloud Group shares are held by institutional investors. 19.8% of Nutanix shares are held by insiders. Comparatively, 50.4% of Seven Stars Cloud Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Nutanix and Seven Stars Cloud Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nutanix 2 4 16 1 2.70
Seven Stars Cloud Group 0 0 0 0 N/A

Nutanix currently has a consensus price target of $36.10, indicating a potential upside of 14.23%. Given Nutanix’s higher possible upside, equities research analysts plainly believe Nutanix is more favorable than Seven Stars Cloud Group.

Summary

Seven Stars Cloud Group beats Nutanix on 8 of the 13 factors compared between the two stocks.

About Nutanix

Nutanix, Inc. is a United States-based company, which provides an enterprise cloud platform that converges silos of server, virtualization and storage into an integrated solution. The Company’s enterprise cloud platform connects to public cloud services. It has operations in the United States; Europe, the Middle East and Africa; Asia-Pacific, and Other Americas. Its solution consists of software product families, including Acropolis and Prism. Its solution is delivered on commodity x86 servers. Acropolis includes its Distributed Storage Fabric that delivers enterprise-grade data management features. Acropolis also includes a built-in hypervisor, and its Application Mobility Fabric that enables application placement, conversion and migration across various hypervisors, and between public and private clouds. Prism delivers integrated virtualization and infrastructure management, operational analytics and a suite of one-click administration capabilities.

About Seven Stars Cloud Group

Seven Stars Cloud Group, Inc., formerly Wecast Network, Inc., is engaged in providing cloud-based, business to business (B2B) solutions for business landscape. The Company focuses on BASE technology and infrastructure including Blockchain, artificial intelligence, supply chain and exchanges to the virtual platform as a service (v pass). Its business units include smart intellectual property cloud, smart sales cloud products and transactional cloud. The Company is engaged in creating closed trade ecosystem for buyers and sellers. The Company creates a vertical, transactional platform for global enterprise.

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